35In recitals 244 to 263 of the decision at issue, the Commission stated that it was apparent both from the wording of section 25 of the TCA 97 and from its purpose that that provision, which does not provide guidance on how to determine the chargeable profit of an Irish branch, could only be applied by using a profit allocation method. In that regard, it noted that Article 107(1) TFEU required that method to be based on the arm’s length principle, regardless of whether or not Ireland had incorporated that principle into its national legal system. The Commission based that finding on two premisses. First, it recalled that any tax measure adopted by a Member State had to comply with the rules on State aid. Secondly, it contended that it followed from the judgment of 22 June 2006, Belgium and Forum 187 v Commission (C‑182/03 and C‑217/03, EU:C:2006:416), that a reduction in the tax base resulting from a tax measure enabling a taxpayer to employ transfer pricing in intra-group transactions that does not resemble prices charged in conditions of free competition confers a selective advantage on that taxpayer for the purposes of Article 107(1) TFEU.
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